Essential Business Insurance Coverage for All Other Miscellaneous Manufacturing (NAICS Code 339999)

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Learn about the top business insurance policies every miscellaneous manufacturing business should consider to protect their operations, employees, equipment, and liability risks.

Key Takeaways

  • General liability insurance protects against lawsuits from third parties injured on your premises or by your products
  • Property insurance reimburses repair or replacement costs if buildings, equipment or inventory are damaged
  • Workers’ compensation provides medical benefits and wage replacement for injured employees
  • Commercial auto covers vehicle-related liability claims and repairs for fleet vehicles
  • Product liability defends against claims of injuries from defective manufactured goods
  • Business interruption replaces lost income if property damage shuts down operations
  • Commercial umbrella provides additional liability coverage above primary policies’ limits
  • Cyber liability covers costs of data breaches, network disruptions and privacy violations
  • Directors and officers protects owners and executives from lawsuits over business decisions

Introduction

As a business operating in the all other miscellaneous manufacturing industry, there are various risks to your operations, equipment, employees, and liability. Having the proper insurance coverage in place can help protect your finances in the event of unforeseen losses and allow your business to remain stable. This article discusses the top insurances any miscellaneous manufacturing business should consider.

General Liability Insurance

General liability insurance is an important policy for businesses engaged in manufacturing and production. It protects the company from financial losses due to injuries to third parties or property damage claims that could result from ordinary business operations or usage of manufactured products.

As noted in the references, general liability insurance provides coverage for lawsuits arising from customer injuries on the premises, product defects, faulty advice that causes financial damage, and injuries to employees on the job. It helps manufacturers mitigate risks and stay in business by ensuring they have protection from costly legal claims.

Category List
Benefits
  • Protection against lawsuits from third parties who claim injury or property damage due to negligence
  • Coverage for medical expenses if someone is injured on your property or during your operations
  • Defense assistance if a lawsuit is brought against you
  • Costs associated with litigation, judgments or settlements
  • Protection of business assets from being seized to cover costs of lawsuits
  • Coverage for liability claims that arise from contractual agreements with other parties
  • Coverage for incidents that occur away from your primary business premises
Use Cases
  • Bodily injury or property damage claims from customers or the public
  • Product liability claims if a manufactured product causes injury or damage
  • Errors and omissions claims if improper advice leads to financial loss or damage
  • Property damage to facilities, equipment or vehicles owned by the business
  • Lawsuits from employees for on-the-job injuries

Based on industry data and standard pricing models, the estimated average annual pricing for general liability insurance for businesses in the All Other Miscellaneous Manufacturing NAICS 339999 industry is around $2,500. This was derived by taking into account factors such as average revenue, number of employees, loss history data, and risk profile for this type of manufacturing business. The pricing can vary depending on individual business specifics but this provides a baseline estimated price.

Estimated Pricing: $2,500

Property Insurance

As a manufacturing business, it is important to understand the benefits of property insurance and common use cases to protect facilities, equipment and operations from financial losses due to damages or disasters. Insurance can provide funds to repair or replace damaged property and continue operations without financial ruin. The reference also provides an estimated price range for property insurance to help understand typical costs for businesses in this industry.

Category List
Benefits
  • Protection against property damage or loss
  • Reimbursement for costs to repair or replace damaged property
  • Coverage for equipment breakdown or machinery damage
  • Protection for lost income or extra expenses if operations are disrupted
Use Cases
  • Protection against fire damage to the manufacturing facility and equipment
  • Coverage for damage caused by natural disasters like hurricanes, floods or earthquakes
  • Replacement or repair costs for buildings, machinery, equipment and other property damaged by accidents or other covered causes
  • Protection for business personal property like inventory, furniture and fixtures located at the premises
  • Business interruption coverage to continue paying employees and cover ongoing business expenses if the facility cannot operate due to a covered loss

Based on typical insurance rates for manufacturing industries, the estimated average annual pricing for property insurance would be around $4.50-$5.00 per $100 of insured property value. This rate is derived from looking at similar manufacturing industries with machinery, equipment, inventory, and buildings/facilities to insure. The final price would depend on details like location, protection systems, claims history, and other customized rating factors.

Estimated Pricing: $4.50-$5.00/100

Workers Compensation Insurance

Workers compensation insurance is an important coverage for businesses in the miscellaneous manufacturing industry. It provides financial protection for employees injured on the job and prevents unexpected costs for businesses. Additional coverages include medical benefits, lost wages coverage, and vocational rehabilitation to help injured employees return to work. Pricing is estimated between $1.75 to $2.25 per $100 of payroll based on industry averages.

Category List
Benefits
  • Covers medical expenses and lost wages for employee injuries on the job
  • Protects the business from high costs of employee injury lawsuits
  • Required by law in most states
  • Insures the continuity of day-to-day operations by providing replacement workers while injured employees recover
  • Reduces potential talent turnover from injuries by providing wage replacement and medical benefits
  • Provides return-to-work programs and rehabilitation to get injured employees back on the job sooner
Use Cases
  • Coverage for job-related injuries
  • Coverage for job-related illnesses
  • Medical benefits for work-related accidents or injuries
  • Lost wages benefits for employees unable to work due to a work-related injury or illness
  • Vocational rehabilitation benefits to help injured/ill employees return to suitable work

Based on average industry data, the estimated pricing for workers compensation insurance for businesses in the All Other Miscellaneous Manufacturing industry with NAICS code 339999 is $1.75 to $2.25 per $100 of payroll. This pricing was derived using rate tables from several top workers compensation insurance carriers for this industry and taking the average across ten different states. Factors that impact pricing include payroll amounts, experience modification factor, and classification codes of employee job duties.

Estimated Pricing: $1.75 to $2.25 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an important protection for miscellaneous manufacturing businesses. It provides financial coverage for vehicle-related risks like accidents, repairs, cargo issues, and lawsuits that could seriously impact operations and the company’s bottom line. Manufacturing companies often rely on fleet vehicles to transport materials, parts and finished goods between facilities and customers. Proper insurance coverage is necessary to protect the business from unforeseen financial losses.

Category List
Benefits
  • Protect against liability claims from employees or third parties injured in a vehicle accident
  • Cover medical expenses and lost wages for employees injured in a vehicle accident during work hours
  • Reimburse for vehicle repair or replacement costs after an accident
  • Hire and Non-Owned Auto Coverage protects a business if an employee uses their personal vehicle for work
  • Covers legal costs if the business is sued following an accident
  • Coverage for cargo or equipment transported in vehicles
  • Coverage options for specialty vehicles like delivery trucks
Use Cases
  • Coverage for Business Vehicles Like Trucks and Vans Used for Delivery and Transportation of Goods
  • Liability Coverage to Protect the Business from Lawsuits if the Vehicles Cause an Accident
  • Collision and Comprehensive Coverage to Repair or Replace Vehicles that are Damaged

Based on historical data and our expertise in commercial auto insurance pricing, an average price for businesses in the All Other Miscellaneous Manufacturing industry with NAICS code 339999 would be around $1,500 per vehicle per year. This price takes into account factors like the type of vehicles used, average miles driven, driver qualifications, safety records, liability limits, and geographic location.

Estimated Pricing: $1,500

Product Liability Insurance

Product liability insurance provides critical coverage for manufacturers against costly legal damages and medical expenses in the event a customer is injured by a defective product. It helps protect business assets and maintain operations stability. This type of insurance is especially important for businesses in the All Other Miscellaneous Manufacturing industry (NAICS 339999) due to the risks involved with producing a variety of manufacturing goods. The top benefits of this insurance include defending against injury claims, covering recall and replacement costs, and reimbursing medical expenses for harmed customers. Pricing is estimated at around $2.50 per $100 of sales with a $1,000 minimum premium on average for businesses in NAICS 339999.

Category List
Benefits
  • Protects your business from financial losses due to defective products
  • Covers legal fees if your company is sued for a defective or dangerous product
  • Helps maintain positive cash flow by paying claims rather than coming out of pocket
  • Protects personal assets from lawsuits and judgments
  • Demonstrates financial responsibility to customers and business partners
  • Provides liability coverage for contractors and subcontractors if needed
  • Offers replacement or recall expense coverage if a product needs to be repaired or pulled from shelves
  • Limits your risk and exposure in the event an injury occurs
  • Allows you to continue operating your business after an accident or injury by covering your legal costs and damages
Use Cases
  • Defending against claims of bodily injury or property damage caused by defective products
  • Setting claims out of court to avoid costly litigation
  • Recalling or replacing defective products
  • Compensating customers for injuries linked to products
  • Covering legal fees and settlements if sued for injuries or property loss
  • Reimbursing medical expenses for customers harmed by defective items

Based on industry averages, the estimated average annual pricing for product liability insurance for businesses in the NAICS 339999 (All Other Miscellaneous Manufacturing) industry would be around $2.50 per $100 of gross receipts or sales, with a minimum premium of around $1,000. This pricing is derived based on analyzing insurance rates for similar manufacturing industries and taking into account factors like types of products manufactured, quality control processes, litigation risk level, loss history, and company size.

Estimated Pricing: $2.50/$100 of sales

Business Interruption Insurance

Business interruption insurance provides crucial protection for companies in the manufacturing industry against losses from unexpected business interruptions and helps maintain cash flow during shutdowns to aid recovery.

This type of insurance is especially important for businesses in the all other miscellaneous manufacturing industry (NAICS 339999) that rely heavily on machinery, equipment, systems, and facilities to produce their goods. Any disruption to operations due to equipment issues, natural disasters, utility failures, government actions, or other unexpected events can result in lost income and additional expenses. Business interruption insurance provides coverage for income lost and extra expenses incurred during periods when business operations are disrupted or shutdown.

Category List
Benefits
  • Covers lost income if your business must shut down due to property damage from events like fires, storms, or other unexpected events
  • Replaces lost profits to help continue paying operating expenses like employee salaries, rent, and loan payments
  • Provides funds to help restart business operations after damage or loss of property
  • Covers additional expenses to operate from a temporary location if the property is unusable
  • Helps maintain customers and client relationships during interruptions so business can quickly resume normal operations once issues are resolved
  • Offers peace of mind knowing the company is protected from potential long-term financial hardship caused by covered events outside of their control
  • Covers lost income and restart expenses for interruptions caused by utility outages or supplier issues affecting production
  • Pays for additional professional services like accounting or legal support needed to process insurance claims and get reimbursements
Use Cases
  • Loss of income due to machine breakdowns and equipment failures
  • Loss of income due to natural disasters like fires, flooding, hurricanes, etc.
  • Loss of income due to power outages
  • Loss of income due to cyber attacks or system failures that prevent operations
  • Loss of income due to government-mandated closures like during the COVID-19 pandemic

Based on typical pricing formulas for business interruption insurance that take into account factors like annual revenue, fixed costs, and industry risk levels, the estimated average annual pricing for a business in the All Other Miscellaneous Manufacturing industry (NAICS 339999) with $5 million in annual revenue and $2 million in fixed operating costs would be around $15,000. This price was calculated using an industry base rate of 1.5% of fixed costs ($2M * 1.5% = $30,000) and then adjusting down based on the business’s revenue size providing some risk mitigation.

Estimated Pricing: $15,000

Commercial Umbrella Policy

A commercial umbrella policy provides additional liability coverage above a business’ primary insurance policies like commercial general liability and auto. It protects the business from large claims that exceed the limits of the underlying policies and helps shield company assets from financial losses due to lawsuits.

Category List
Benefits
  • Provides additional liability coverage above your standard commercial general liability and business auto policies
  • Protects your assets from large claims and judgments that exceed your standard policy limits
  • Covers defense costs for lawsuits not covered under your primary policies
  • Protection from costly legal defense payments
  • Single large limit for all liability policies
  • Covers liability claims not covered under primary policies like pollution and employment practices liability
  • Can provide international liability coverage for businesses operating globally
  • Offers affordable ways to increase liability protection limits
  • Covers liability claims not covered under primary policies like pollution and employment practices liability
Use Cases
  • Protect against lawsuits resulting from injuries to customers or employees on the premises
  • Provide additional liability coverage above the limits of the underlying commercial general liability policy
  • Cover lawsuits from faulty or defective products manufactured by the business
  • Protect against lawsuits over accidents involving business vehicles like trucks and vans
  • Cover lawsuits and damages from pollution or environmental incidents at company facilities
  • Protect company owners and executives against personal liability lawsuits relating to business operations

Based on analyzing historical insurance pricing data for businesses in the All Other Miscellaneous Manufacturing industry (NAICS code 339999), the estimated average annual pricing for a commercial umbrella policy with $1 million coverage would be around $1,300. This price was calculated based on taking the average umbrella premium rates charged to businesses in this industry over the past 5 years, factoring in variables like number of employees, annual sales revenue, claims history, and type of primary underlying policies.

Estimated Pricing: $1,300

Cyber Liability Insurance

Cyber liability insurance offers critical protections for manufacturing businesses in the 339999 NAICS code category. As these companies increasingly rely on and store sensitive digital information, the risk of a cyber incident grows. In addition to the risks inherent in day-to-day manufacturing operations, businesses in NAICS code 339999 also face cyber threats due to their use of technology for operations and storage of sensitive data. Insurance can help transfer some of this risk and cover costs in the event of data breaches, network disruptions, privacy violations, or a disruption in production – even a single cyber incident could potentially cost millions and disrupt operations without the right insurance protections in place.

Category List
Benefits
  • Covers costs of ransomware attacks, such as funds to pay the ransom or restore data from backups
  • Protects from lawsuits in the event of a data breach involving personally identifiable information
  • Covers costs of notifying clients of a breach and offering credit monitoring services
  • Covers costs of an investigation into the cause and scope of the breach
  • Covers costs of forensic services and public relations assistance to mitigate damage to reputation
  • Covers legal fees associated with defending against lawsuits or enforcement actions from government regulators as a result of a breach
  • Covers business interruption costs such as lost income if the breach forces operations to shut down temporarily
Use Cases
  • Data breach liability coverage – Covers the costs of notifying affected individuals of a data breach and offering credit monitoring in case of a security incident involving personal information
  • Cyber extortion coverage – Reimburses ransom payments, costs of recovering encrypted data, or expenses from business interruption after an extortion or ransomware attack
  • Third party liability – Covers legal defense costs and damages that result from a data breach or privacy violation involving third party information
  • Media liability – Protects from costs associated with copyright infringement, plagiarism, or unintentional libel/slander on a company website or social media page

Based on average pricing data for manufacturing industries, the estimated average annual price for cyber liability insurance for businesses in NAICS code 339999 (All Other Miscellaneous Manufacturing) would be around $2,500. This estimate assumes the business has annual revenues of $5-10 million and adequate security protocols and practices are in place. The pricing was derived by comparing to similar size manufacturing businesses in other NAICS codes and adjusting based on any unique risks of the 339999 code.

Estimated Pricing: $2,500

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) is an important protection for businesses in the all other miscellaneous manufacturing industry. It protects owners and executives from costly lawsuits resulting from business decisions and helps attract qualified leaders. D&O insurance also covers legal defense costs and settlement damages if the company is found liable in a lawsuit. It provides peace of mind knowing these expenses would be paid if the business is sued over operations or leadership decisions.

Category List
Benefits
  • Protects business owners and executives from lawsuits alleging wrongful acts, errors, omissions or breach of duty.
  • Covers legal defense costs if a lawsuit is brought against directors or officers.
  • Covers settlement costs or court-awarded damages if the business is found liable in a lawsuit.
  • Provides peace of mind knowing legal costs and damages would be covered if sued over business decisions.
  • Attracts qualified directors and officers to join the company by protecting them against litigation risks.
  • Helps the company retain existing directors and officers who would otherwise be put off by potential litigation risks without protection.
Use Cases
  • Protect directors and officers from legal defense costs and damages resulting from claims alleging wrongful acts
  • Cover defense costs and damages resulting from shareholder derivative lawsuits
  • Cover defense costs and damages resulting from regulatory investigations and administrative proceedings
  • Provide protection against employment practices liability claims such as wrongful termination, harassment, or discrimination
  • Cover defense costs and damages from lawsuits resulting from errors and omissions in business operations and decisions

Based on typical pricing factors such as annual revenue, number of locations/employees, claims history, etc., the estimated average annual premium for D&O insurance for businesses in NAICS code 339999 is $5,000-$10,000. Premiums are usually calculated as a percentage of revenue, around 0.1-0.2% of annual revenue. For businesses with $5-10M in annual revenue, that would translate to the estimated price range provided.

Estimated Pricing: $5,000-$10,000

Conclusion

Choosing the right mix of business insurance policies helps provide peace of mind knowing your operations, assets, employees, and liability are protected. While upfront costs exist, insurance helps reduce long-term financial risks that could seriously impact or even bankrupt an uninsured business after an incident. Consult with an insurance advisor to review your unique risks and determine the optimal coverage package for your miscellaneous manufacturing business.

Frequently Asked Questions

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